The council was unanimous in its decision at is ordinary meeting last night.

The proposal includes the construction of 12,660 square metres of retail space, 1045 sq m of office space, 887 sq m of food and drink premises and 584 car parks.

The council is against the development as it believes it will have a serious detrimental economic effect on existing businesses.

Fifty-four objections from residents and businesses and two letters of support for the proposal were lodged.

Cr Julie Rivendell said one of the major grounds for refusal was that it didn’t meet the commercial strategies of the Bendigo planning scheme.

“It’s also a premature application prior to the structure plan (for the Strath precinct) being completed,’’ she said.

The applicant intends to build in Condon Street, Kennington, after demolishing the Victory College school.

An independent economic assessment revealed the proposal would have devastating results on existing businesses.

“It would result in a real loss in retail goods trade of approximately $10.1 million for Strath Village,’’ city policies and processes co-ordinator Emma Bryant wrote in a report to the council.

“This type of loss would lead to a cannibalisation of Strath Village, where that centre would effectively die,’’ she said.

The applicant, Kennington Village Pty Ltd, has lodged an appeal under section 79 of the Planning and Environment Act 1987 on the basis that the responsible authority failed to determine an application within 60 days.

An administrative mention will be held on December 5.

The full hearing will take place on February 23.

“I would be shocked and horrified if VCAT did anything but adopt our advice,’’ Cr Wayne Gregson said.